JOHANNESBURG – South Africa’s rand retreated early on Thursday, pausing after a two-day advance as investors took profits and looked ahead to the G20 summit where the United States and China are set to agree a truce in their tariff war.
At 0650 GMT the rand was 0.1% weaker at 14.2300 per dollar, easing slightly from its overnight close of 14.2250.
In the previous session the rand had pushed to a new 5-week high as the 14.20 resistance level attracted some bids despite waning risk demand after the United States central bank played down expectations of aggressive interest-rate cuts.
A Chinese newspaper, citing sources, said that the United States and China have agreed to a tentative truce in their trade dispute ahead of a meeting between leaders of the two nations on Saturday on the sidelines of the G20 summit.
Bonds were flat, with benchmark 2026 government issue steady at 8.16%. – Reuters Africa